A New Leader in Crypto ETFs

• BlackRock’s ETF holdings have surpassed Grayscale, marking a significant shift in the crypto investment landscape.
• Institutional investors are increasingly favoring regulated crypto ETFs like those that BlackRock and Fidelity provide.

For the first time, BlackRock’s ETF holdings surpassed Grayscale’s, signaling a dramatic shift in the crypto investment landscape.

According to Arkham, in terms of on-chain holdings, BlackRock’s ETFs, IBIT and ETHA, have eclipsed Grayscale’s popular ETFs, which include GBTC, BTC Mini, ETHE, and ETH Mini.

This result establishes BlackRock as the provider with the largest collective ETF holdings in the crypto market, highlighting the asset management firm’s rising influence and power in this quickly evolving industry.

BLACKROCK ETF HOLDINGS OVERTAKE GRAYSCALE FOR THE FIRST TIME

BlackRock’s ETFs IBIT and ETHA have just overtaken Grayscale’s ETFs GBTC, BTC Mini, ETHE and ETH Mini in on-chain holdings.

Blackrock ETFs now have the largest collective holdings of any provider.

BlackRock ETF… pic.twitter.com/PB41LEGc97

— Arkham (@ArkhamIntel) August 16, 2024

BlackRock Edges Past Grayscale in Crypto ETF Holdings Battle 

According to the most recent data, BlackRock’s ETF holdings total $21,217,107,987, narrowly ahead of Grayscale’s holdings of $21,202,480,698. This close fight illustrates the fierce rivalry between the two financial behemoths as they compete for leadership in the expanding crypto ETF market.

Previously, according to a CNF report, BlackRock and Nasdaq proposed the listing of an Ethereum ETF option, which the SEC is currently reviewing.

This proposal’s final decision is expected by April 2025. If authorized, this option might offer investors a lower-cost way to obtain exposure to and hedge their Ethereum assets, further cementing BlackRock’s market position.

Furthermore, BlackRock’s Ethereum ETF, which was approved alongside eight other ETFs in May, started trading last month, putting another feather in the company’s cap. This new offering is expected to generate significant interest from investors seeking regulated exposure to Ethereum, particularly given recent macroeconomic developments.

On August 6th, as we previously reported, strengthening US macroeconomic data and reducing Bitcoin ETF outflows were noted, illustrating the shifting dynamics of the crypto market.

Capula Management, a London-based asset management firm, disclosed a significant investment of roughly $500 million in Bitcoin ETFs, indicating a growing demand for regulated market exposure to Bitcoin.

Notably, a major chunk of Capula’s holdings are in BlackRock’s IBIT and Fidelity’s FBTC, demonstrating that institutional investors are increasingly seeking exposure to Bitcoin through regulated market products.